PEO / ASO - Types of Professional Employer Organizations (PEOs)

Employer of Record Responsibilities

With a PEO / ASO:

Employee taxes are reported and deposited under the client’s FEIN.

Considerations for your company:

In a PEO - ASO arrangement the PEO does not formally take on the employer of record responsibilities. Although they provide all of the same governmental reporting tasks, it is done under the Federal Employer Identification Number (FEIN) of the client company, much like a payroll service might do. The client company remains legally responsible for all tax remittances and payroll law compliance.

Workers’ Compensation Insurance

With a PEO / ASO:

Coverage provided by policy in client's name.

Considerations for your company:

Coverage provided under your own "stand-alone" policy.

If your company currently has an attractive Workers' Compensation insurance policy in place, a PEO - ASO arrangement can help you administer your own policy. A PEO offering an ASO arrangement can also assist you with obtaining your own "stand alone" policy.


Safety and Risk Management

With a PEO / ASO:

Claims management provided by PEO. Safety guidance provided by PEO.

Considerations for your company:

Coverage provided under your own "stand-alone" policy.

If the PEO is assisting you with obtaining your own policy, then the PEO will take on a more advisory capacity...any adverse claims experience will affect your experience rating and not theirs.


Health Plans

With a PEO / ASO:

Coverage provided by policy in clients name.

Considerations for your company:

Coverage provided under your own "stand-alone" policy.

If your company currently has an attractive Health Plan in place, some PEOs can assist you with administering your plan. PEOs offering an ASO arrangement can assist you with obtaining your own "stand alone" health plan. This has the advantage of being portable if your decide to terminate the PEO relationship.


Employee Benefits

With a PEO / ASO:

Supplemental benefits offered by policy in client's name. 401K provided by policy in clients name.

Considerations for your company:

Same as "Classic" PEO arrangement.

Human Resources

With a PEO / ASO:

Multitude of services offered in either “a la carte” or bundled pricing.

Considerations for your company:

Same as "Classic" PEO arrangement.

Regulatory Compliance

With a PEO / ASO:

Provided by PEO.

Considerations for your company:

Same as "Classic" PEO arrangement.


Several forms of PEO relationships are available to most businesses and many PEOs can offer multiple options. Let StaffMarket help you find the right option for your company.

PEO solutions come in several forms. Let's find your best solution.